DISH Network Beats on EPS but GAAP Results Lag

DISH Network (Nasdaq: DISH  ) reported earnings on May 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), DISH Network met expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.

Margins shrank across the board.

Revenue details
DISH Network chalked up revenue of $3.58 billion. The 15 analysts polled by S&P Capital IQ wanted to see revenue of $3.61 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $3.22 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.80. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.71 per share. GAAP EPS of $0.80 for Q1 were 34% lower than the prior-year quarter's $1.22 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 41.1%, 30 basis points worse than the prior-year quarter. Operating margin was 16.0%, 390 basis points worse than the prior-year quarter. Net margin was 10.1%, 690 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.67 billion. On the bottom line, the average EPS estimate is $0.75.

Next year's average estimate for revenue is $14.54 billion. The average EPS estimate is $2.75.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 317 members out of 398 rating the stock outperform, and 81 members rating it underperform. Among 119 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 give DISH Network a green thumbs-up, and 21 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DISH Network is outperform, with an average price target of $33.75.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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